Prepare Hertog Company’s journal entries to record the following transactions for the current year. May 7 Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,300. June 6 Sells its entire investment in Kraft bonds for $11,050 cash.
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Prepare Hertog Company’s
May 7 Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,300.
June 6 Sells its entire investment in Kraft bonds for $11,050 cash.
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- Salt Foods purchases fifty $1,000, 5%, 10-year bonds issued by Pretzelmania, Inc., for $54,088 on January 1. The market interest rate for bonds of similar risk and maturity is 4%. Salt Foods receives interest semiannually on June 30 and December 31.1. & 2. Record the necessary entries regarding the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole number.)Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $87,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $92,658,219. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for 20Y1. 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of…Prepare Natura Company's journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. b. On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. Note: Use 360 days in a year. Do not round your intermediate calculations. View transaction list Journal entry worksheet < 1 2 On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journal
- Assume that on July 1, Jerome, Incorporated, paid $100,000 to buy Potter's 8 percent, two-year bonds with a $ bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they ma Complete the necessary December 31 entry to record receipt of interest by selecting the account names from and entering dollar amounts in the debit and credit columns. View transaction list Journal entry worksheet 1 Assume that on July 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they mature. Complete the necessary December 31 entry to record Note: Enter debits before credits. Date Dec. 31 General Journal Debit CreditOn the first day of the fiscal year, a company issues a $8,300,000, 6%, 8-year bond that pays semiannual interest of $249,000 ($8,300,000 × 6% × ½), receiving cash of $6,901,364. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense fill in the blank 2 fill in the blank 3 Discount on Bonds Payable fill in the blank 5 fill in the blank 6 Cash fill in the blank 8 fill in the blank 9On the first day of the fiscal year, a company issues a $8,300,000, 10%, 8-year bond that pays semiannual interest of $415,000 ($8,300,000 × 10% × ½), receiving cash of $9,267,140. Journalize the first interest payment and the amortization of the related bond premium, round to the nearest dollar. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select -
- Assume that on July 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they mature. Complete the necessary December 31 entry to record receipt of interest by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.Doyle Company issued $362,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $52, 500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. Journal entry worksheet Note: Enter debits before credits. 4 Date Dec 31 5 ü 6 Record the interest expense for bonds payable for Year 2. General Journal C 7 8 Debit Credit >1.Prepare Hertog Company’s journal entries to record the following transactions for the current year. May 7 Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,830. June 6 Sells its entire investment in Kraft bonds for $11,330 cash
- Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,433,150. Interest is payable semiannually. Shunda’s fiscal year begins on January 1. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Cash fill in the blank f63d02049fd306d_2 fill in the blank f63d02049fd306d_3 Premium on Bonds Payable fill in the blank f63d02049fd306d_5 fill in the blank f63d02049fd306d_6 Bonds Payable fill in the blank f63d02049fd306d_8 fill in the blank f63d02049fd306d_9 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense fill in the blank…Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for 20Y1. 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of…On Jan. 1, Year 1, Foxcroft Inc. issued 90 bonds with a face value of $1,060 for $99,400. The bonds had a stated rate of 5% and paid interest semiannually. What is the journal entry to record the first payment to the bondholders? If an amount box does not require an entry, leave it blank. Jun. 30 Interest Expense Interest Expense Cash Cash
